Dogecoin closes in on record after eToro support
By Neil Dennis
07:39, 4 May 2021
Dogecoin was enjoying another round of bullish activity on Tuesday, following a week of gains that have brought it to within pips of its 16 April record high.
On Tuesday, the meme-based cryptocurrency was up nearly 14% at $0.4346, having reached a session high of $0.4476. On 16 April, dogecoin hit a record level of $0.4499.
eToro to trade doge
The latest leg of dogecoin’s volatile month, which has seen it rise from less than half a US cent to its current levels, was supported by the announcement from cryptocurrency platform eToro that it would begin trading in the asset. Some trading platforms, including Coinbase, have refused to support the token because of its extreme volatility.
In an email to its users eToro said that beneath the dog-memed branding, dogecoin was based on “solid technical foundations”.
The email added: “Unlike bitcoin’s fixed supply and relatively slow block times, the supply of dogecoin increases at a steady rate, making dogecoin inflationary with faster and cheaper transactions – qualities that some say make it ideal for use as a real-world currency.”
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Bolstered by its fans
Dogecoin rallies have often been supported by its fans on social media, and a recent event – naming 20 April as “DogeDay” – helped underpin its last rally to its record high on 16 April. Over the following week, however, dogecoin sank.
Since its 23 April low of $0.1663, dogecoin has rallied around 250% and FXStreet analyst Sheldon McIntyre said on Tuesday, its weekly relative strength index maintained an overbought reading.
He added: “Momentum is on the bulls’ side, but it is important to note that the volume underpinning the rebound has been uninspired.”
Ethereum rally
Ether, the second-largest cryptocurrency by market cap, was also sharply higher on Tuesday after hitting another all-time high in the previous session.
Ethereum has hit a series of new records in recent months, its price more than quadrupling since the start of 2021, with the rally strongly supported by the growing number of use cases for the Ethereum blockchain.
On Tuesday, the ether cryptocurrency was up 8.8% at $3,359, having hit a record £3,451 on Monday. On 31 December 2020, ether had closed at $736.
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